TAIPEI (TVBS News) — The Ministry of Finance (MOF) unveiled on Monday (July 3) that nearly 6.5 million households in Taiwan filed their income for the year 2021, with approximately 3.05 million of them exempted from paying taxes, including 13 households that earned over NT＄ 5 million in yearly income.
According to the latest statistic, most taxpayers, either middle and low-income households or salaried workers, don't pay income taxes.
Out of the 13 high-earning households receiving tax cuts, however, two of them earned more than NT＄ 20 million, two household earnings ranged between NT＄ 10 million to NT＄ 20 million, four households made NT＄ 7 million to NT＄ 10 million, and five households received NT＄ 5 million to NT＄ 7 million.
After carefully analyzing these wealthy households paying no taxes in 2021, the MOF concluded that it was primarily due to deductible expenses, such as medical expenses and charitable donations, a common strategy used by the rich to avoid paying taxes in Taiwan.
The MOF further stated that the National Taxation Bureau in each district would review cases with high income but paying zero tax regularly. A measure aims to ensure legal tax mitigation and maintain tax fairness.
